Help Me Analyze First Deal

[Alex Velez]

Hello BP Community,

I will possibly be a first-time homeowner in a month or so (crossing fingers here); however, I need the help of the BP Community to analyze the deal. Here is some information:

Property description: First and second floor with 3Brs &1 bth. Attic and basement have a full bath. House Roof, Hot water tank and Furnace 2 years old. Wood Floor Throughout the house.

Location: Bridgeport, CT

Financing: VA Loan ($0 down) using CHFA. Also, with CHFA I can benefit from their $10,000 closing cost assistance at 0% interest for 30 years for veterans (Nice!).

Going with the lender I’m going with along with CHFA the interest rate will be 3.5%.

The purchase price for the house is $275,000. The seller will contribute $5,000 towards closing. Therefore, I can use the Closing Cost assistance for the VA Funding Fee and the remainder of the closing costs.

See attached excel spreadsheet , please, help me on this BP. Especially, the investors from Bridgeport, Connecticut. I am, mostly, concern with the CapEx. I am provided two examples- 1) With Project Mangement at 10%, and 2) Without the PM because it will be my one and only property; in other words, I can manage it myself.

Below you will see the CapEx table I created using excel. The items with three *** represent a total of three units. I really want to know if the numbers which I have estimated are around the ballpark. Thanks BP!

[Travis Lloyd]

I don't see any expense lines for heat, electric, trash, snow removal? You mentioned the furnace (singular?) is 2 years old. If your tenants pay, great, but if not, you need a fuel line item. Electric you will at least have common areas / perimeter lighting. Trash in bridgeport can be done by the city I know, but private is often much less of a hassle. Snow - it adds up up here. Nothing terrible depending on how large the driveway/parking areas are - but its something.

For your capX reserve, setting aside 400+ a month is fantastic on a 3 family. Basically you just want to build up a 10-15k reserve, then you can take that line item out. Some of your capX costs are off - but it seems like there are as many high as there are low - you'll be fine overall.

Good luck!